How does the budget line change if the price of good 2 decreased by a rupee but the price of good 1 and the consumer's income remain unchanged ?

How does the budget line change if the price of good 2 decreased by a

1.	How does the budget line change if the price of good 2 decreased by a rupee but the price of good 1 and the consumer's income remain unchanged ?
Answer» Solution :When price of GOOD 2 decreases, then the budget LINE will shift to the right from AB to `AB_(1)`. The new budget line meets the X-axis at the same POINT A because there is no change in the price of good 1. But it will touch the Y-axis to the right of B at point `B_(1)` because the consumer can purchase more of good 2 at the same income LEVEL.